Why do some stocks sometimes trade flat after releasing their earnings? Even if good or bad earnings are presented. My suggestion is that the options of the underlying stock have a very high implied volatility and it would be more profitable to be short the options than long the options. Then the party owning the short position tries keeping the stock flat. This party must be I assume the market-maker or another party with large capital at his disposal.
The question may seem easy, however I am pondering on it for two weeks. I have read the book McMillian on Options and searched on Google Scholar. Unfortunatly, my attempts were not fruitful. Would someone please be so kind and explain why this happens?